I am not an attorney – this is just general information about Home Owners Associations. Consult the documents for your Home Owners Association for the correct and specific information for your Home Owners Association.
“Home Owners Association” aka the “HOA.” It’s Owners with an “S” so remember as you talk about an HOA, you are talking about yourself as an owner as well as the other owners in your HOA.
The Home Owners Association is usually set up for a neighborhood as a “non profit” corporation. The Home Owners as members of the corporation. Here is an example of language you’d see in the “articles of incorporation.”
“The Corporation shall have Members. The Corporation will not issue shares evidencing membership. All Lot Owners in the Project shall be members of the Corporation. The terms and conditions of membership and voting will be set forth in the Declaration and Bylaws of the Corporation.” Members ie: Home owner or lot owner. I will use “members” as I continue explaining.
The Home Owners Association is overseen by the “Board of Directors.” Board members are voted in by the “members” of the neighborhood. The “Board of Directors” usually consists of 3 to 5 people. Any “members” within a neighborhood can volunteer to become a member on the “Board of Directors” via the proper voting process and qualifications. The “Board of Directors” is often referred to as the “Board.”
The “Board” acts on behalf of the neighborhood via “bylaws” (rules). The “Board” makes adjustments to the Bylaws as needed.
“Members” are to attend “Board Meetings” to provide input to the “Board of Directors.” This is your way as a “member” to voice your opinion(vote), bring up concerns, and make suggestions about the neighborhood to the “Board of Directors.” Board meetings are usually held monthly or quarterly.. The bylaws usually dictate how often Board meetings are to be held.
Get to know the members of the “Board of Directors.” They will be instrumental on how the neighborhood is governed and your input as a member helps determine the course of what happens in your given neighborhood.
Bylaws – are basically the rules that the neighbors agree to abide by within the neighborhood. It is very important that you read the bylaws for any HOA you are a part of. They vary considerably from neighborhood to neighborhood.
Dues are paid by the members. Consult your bylaws, attend board meetings, and talk to board members to see what your dues are spent on. Budgets and how the dues are spent are just some of the things discussed at board meetings.
This only gets you started on what’s involved with understanding an “HOA,” so read the governing documents for your HOA or the HOA YOU MIGHT BE CONSIDERING BECOMING A PART OF. You have the right to read the governing documents of a neighborhood before you buy a home in an HOA. Your REALTOR® can get those documents for you.
